Supplier prequalification is the assessment used to decide whether a supplier is eligible to participate in a sourcing event or receive an award. The buyer checks relevant capability, experience, financial standing, licences, safety, quality, capacity, and risk before comparing final offers.
How does Supplier prequalification work in practice?
The buyer screens potential suppliers before inviting them into a sourcing event or approved pool. The review may cover legal identity, capability, capacity, financial condition, quality systems, compliance and references. Evidence should be proportionate to the category risk. Passing prequalification confirms eligibility for the next step, not a commitment to award business.
Quick reference for Supplier prequalification
| Check | What it means for the transaction |
|---|---|
| Category | Procurement and sourcing |
| Record to keep | Keep the requirement, requester, supplier response, evaluator and approval together when they apply. |
| Do not infer | Do not treat a sourcing record as a purchase order, invoice or proof of delivery unless that later document has actually been issued. |
